Question : MULTIPLE CHOICE. Choose the one alternative that best completes the statement : 1196126

 

MULTIPLE CHOICE.

Choose the one alternative that best completes the statement or answers the question. 21)

Costing systems that are used for costing like or similar units of products in mass production are called 21)

______ A)

job-costing systems. B)

process-costing systems. C)

inventory-costing systems. D)

bulk costing systems. E)

weighted-average costing systems.

22)

Which of the following manufactured products should use process costing? 22)

______ A)

54 centimetre television sets B)

custom build houses C)

expensive jewellery D)

designer original evening gowns E)

767 jet aircraft

23)

A key feature in process costing is that 23)

______ A)

total costs are divided by total units. B)

(total costs times percentage allocated to each unit) are divided by total units. C)

total units are multiplied by individual costs. D)

(total units multiplied by the percentage allocated to each unit) is multiplied by total costs. E)

total units are multiplied by total costs.

24)

Which of the following is an assumption implicit in process-costing? 24)

______ A)

Ending inventory is always nil, for the cost calculations. B)

All completed units receive the same amount of conversion costs. C)

All completed units receive the same amount of direct material inputs. D)

Opening inventory is always nil, for the cost calculations. E)

All completed units receive the same amount of direct material inputs and the same amount of conversion costs.

25)

Which of the following assertions is TRUE concerning conversion costs? 25)

______ A)

When conversion costs are estimated to be over 80% complete, then the cost-benefit constraint requires us to use 100% as the estimate. B)

The conversion period (for conversion costs calculation) usually includes several operations. C)

Direct labour costs are always included in conversion costs. D)

Conversion costs may be impossible to estimate with any reliability in some cases. E)

The conversion period often includes several operations, and it may be impossible to estimate conversion costs with any reliability in some cases.

26)

Which of the following is NOT one of the steps in process costing? 26)

______ A)

assign costs to equivalent units based on their percentage of completion B)

assign costs to completed units C)

compute equivalent unit costs D)

summarize the flow of physical units of output E)

summarize total costs to account for

27)

Select the TRUE statement regarding process costing. 27)

______ A)

Estimating the degree of completion is usually easier for direct materials than for conversion costs. B)

The accuracy of the completion percentages depends on the accounting system used. C)

Because it tracks beginning inventory’s actual costs of completion, the FIFO method is the most popularly used process costing system. D)

Estimating the degree of completion is usually easier for direct materials than for transferred-in costs. E)

The degree of completion for conversion costs in ending work-in-process depends on the efforts put into the process during the period.

28)

Which of the following is FALSE concerning equivalent units? 28)

______ A)

The number of equivalent units may be identical for direct materials and for conversion costs B)

Equivalent units are equal to physical units. C)

Equivalent units are calculated separately for each cost category. D)

Equivalent units measure output in terms of the physical quantities of the inputs consumed. E)

Equivalent units are necessary where process costing is used.

Use the information below to answer the following question(s).

 

Plastic Molding, Inc.’s costing system utilizes two cost categories; direct materials and conversion costs. Each product must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. Data for the Assembly Department for March 20×1 are:

 

Work in process, beginning inventory, 40% converted400 units

Units started during March 1,200 units

Work in process, ending inventory200 units

 

Work in process, beginning inventory:

Direct materials $200,000

Conversion costs $200,000

Direct materials costs added during March$2,000,000

Conversion costs added during March$2,500,000

29)

What is the unit cost for February in the Assembly Department? 29)

______ A)

$3,500 B)

$3,900 C)

$1,000 D)

$1,750 E)

$3,750

30)

How many units were completed and transferred out of the Assembly Department during March? 30)

______ A)

1,720 units B)

1,600 units C)

1,400 units D)

1,200 units E)

200 units